The Securities and Exchange Commission has said that the sum of N17.09 million has been disbursed to 297 investors from its National Investor Protection Fund.
A breakdown of the compensation, according to data obtained from the commission, showed that the 297 investors were customers of the closed Mega Asset Managers Limited.
The Commission noted that the NIPF board at its first meeting on Dec. 14, 2015, approved N25 million from the fund, and that out of the figure, the sum of N17.09 million was used as compensation.
It explained that 580 complainants suffered loss due to misappropriation by Mega Asset Managers Ltd, noting that after thorough verification, 297 investors were compensated. “The commission’s board had on Dec. 2, 2014 at its 78th meeting approved the utilisation of the NIPF for Mega Assets loss”
The Commission also said that 297 investors paid were those that had successfully completed and submitted relevant documents, added that it would pay other investors after completion of the verification process.
It, however, pledged the willingness of the commission to remain committed to initiatives that would boost investor’s confidence, noting that lack of setting up SEC board contributed to slow pace in investor compensation.
The NIPF is a scheme being promoted by SEC to compensate investors that suffer losses due to the insolvency, bankruptcy or negligence of a capital market operator.
According to rules approved by the Board of SEC, the NIPF will apply only to bankrupt capital market operators that are not dealing members of any Securities Exchange or Capital Trade Points.
